Reverse charge

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Satvir Singh

Satvir Singh (Querist)
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26 June 2013 A company reimburses expenses to employees for hiring taxi. Is the reverse charge applicable?

Ganeshbabu K

Ganeshbabu K (Expert)
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26 June 2013 1)Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee

[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].

2)In such cases, the company will not be liable under reverse charge. However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.

Thanks & regards
Ganesh babu k